Retail spending plunges
Retail sales suffered the worst monthly drop on record last month as more Americans shunned discretionary purchases amid accelerating job losses in a worsening economy, CNNMoney.com reported.
The U.S. Commerce Department said today that retail sales fell 2.8 percent in October, compared with a revised 1.3 percent drop in September. September retail sales were originally reported to have dropped 1.2 percent. October was the fourth consecutive month in which monthly retail sales have declined.
Economists surveyed by Briefing.com on average had forecast a decrease of 2.1 percent for October.
“These numbers reinforce the fact that we are in a recession,” said Michael Niemira, chief retail economist with the International Council of Shopping Centers.
October’s decline is the worst since 1992, when the Commerce Department adopted the North American Industry Classification System standard to measure retail sales.
But based on the government’s prior standard for measuring retail sales, last month’s decline would be the worst since January 1987, when overall retail sales fell 6.5 percent. Sales excluding automobiles and auto parts fell 2.2 percent in October, also worse than expected, compared with a revised 0.5 percent drop in September.
The forecast was for a 1.2 percent decline, according to Briefing.com.
Retail sales were extremely weak across most categories, led by a 5.5 percent drop in auto purchases last month. Sales at gasoline stations plunged 12.7 percent, largely because of plunging prices at the pump. Electronics stores suffered a 2.3 percent decline, while furniture store sales fell 2.5 percent.